LABOR STANDARDS – RECITATION – AUGUST 29 2018

EH 409
Atty M: Can the Wages be paid in cash? A: It does not, let me go back to my question. Can the
wages be paid partly in case and partly in kind?
Student: Yes, Atty.
S: --
A: Can the wages be paid in kind?
A: The labor code only speaks of paying wages in legal
Student: Yes, Atty. tender, and legal tender means “cash”. Payment of wages in
A: Your answer is wrong. kind alone is not allowed in law.

Rationale: Under the labor code, you can never pay wages in S: I’m not sure about the basis, Atty. But I know it can be
kind. The only exception to this rule of paying in legal tender partly in kind.
is “Facilities” which does not fall under the term “in kind”. A: The answer is in the case of deductible facilities, under the
A: Can wages be paid partly in cash and partly in kind? existing regulations. When can it be deductible?

S: Yes, Atty. Ans: Requisites of Facilities –

A: In what instance? A: What agency pf government is empowered to fix wages?

S: For example, Atty, based on what has been provided in S: RTWPB

the labor code- A: To promulgate?
A: Under the labor code, it can only be paid in legal tender. S: NWPC
But that is not my question, my question is can it be paid
partly in cash and partly in kind, and your answer is? A: In region 7, do we have a RTWPB?
S: Yes. S: Yes.
A: In what instance? A: Who is the chairman of the board?
S: Through the inclusion of Facilities. S: The board is chaired by the Regional Director of the DOLE.
A: I don’t know, you tell me. A: Whenever the board fixes the wage, what do they issue?
S: And Supplements. S: A wage order.
A: Give me a complete answer. A: What is meant by wage order?
-- S: It refers to the order promulgated by the RTWPB pursuant
to its wage fixing authority.
A: Does the labor code define supplements?
A: When does the wage order take effect?
S: No, Atty.
S: It takes effect 15 days after the publication in a
newspaper of general circulation.
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A: Can it be subject to review? S: Floor wage method and the Salary ceiling method.
S: Yes, Atty. A: Define the floor wage method.
A: By what agency? S: involves the fixing of a determinate amount to be added
to the prevailing statutory minimum wage.
S: NWPC
A: Now what power does the board exercise in fixing the
A: What is the reglementary period to appeal a wage order? minimum wage?
S: 10 days from the publication of such wage order. S: I believe they use quasi-legislative power in fixing the
A: What are the specific grounds to appeal? wages.

S: The 3 grounds are A: What does the labor code tell us with regards to the place
of payment with these wages?
1.) Non- conformity with prescribed guidelines and/ or
procedures S: The place of payment of wages must be, on the place of
2.) Questions of law work or near the place of work.
3.) Grave abuse of discretion A: Are there any exceptions?
--- second person --- S: One exception is where the employee requests the
A: What are the methods of fixing compensation under the employer that payment be made through an ATM or a bank.
wage order? A: Paid through an ATM? What do you mean?
S: There are four. S: The labor code says the exceptions are when the
1.) Time based employee requests the employer to let the payment be paid
2.) Commission based through an ATM.
3.) Job or Task based A: Does the DOLE have existing guidelines?
4.) Piece-rate based
S: Yes, Atty. But I cannot remember the exact number or
A: What are the methods of fixing compensation under the the D.O.
labor code:
A: Just give us the guidelines.
S: The methods are also time, task, piece and commission
based. S: 1.) It must be requested by a group of employees not less
than 25 employees—
A: Earlier Mr. *** said that the person to fix the wage is the
RTWPB, do you agree with that? A: Are you not referring to payments through a bank?
S: Yes, Atty. S: Yes.
A: What methods can the boards use in fixing wage? A: Do not confuse the requisite of another for another one.
LABOR STANDARDS – RECITATION – AUGUST 29 2018
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S: The requisites are
1.) The ATM system of payment is with written consent of
the employees concerned.
2.) They are given reasonable time to withdraw their
wages
3.) System shall allow workers to receive their wages
within the period or frequency prescribed under the
code
4.) The ATM is within a radius of 1 kilometer from the
place of work
5.) Employer shall issue a record of payment of wages
upon request of the employees
6.) Shall be no additional expenses and no diminution of
benefits
7.) Employer shall assume responsibility in case the law
and regulations are not complied with.
A: Does it require the consent of the employees? All of them?
Majority? Or the employees concerned? Or none at all
because it is a management prerogative
S: Employees concerned.
A: Is that correct? Ms. Xxxx?
Ms. Xxxx: No sir.
A: Oh, its wrong. What is it?
S: Majority of the employees.
A: Is the correct, Ms. Xxxx?
Ms.xxxx: No sir.
A: No again. Let’s skip that. Okay, what are the requisites for
Facilities to be deductible from employee’s wages?
S: Uhm for facilities to be deductible in-
A: From, not “In”. What are the requisites?
S: It must be customarily furnished by the employer for the
employee.
A: Customarily furnished. Okay, what else?
S: It must be valued at its fair in reasonable.
A: It must be charged at fair and reasonable value.
And uh, who determines the fair and reasonable value?
S: As determined by the department of labor and
employment, Atty.
A: Is that correct, Ms. XXXX?
Ms. XXXX: I believe sir, yes.
A: Wrong! Wrong. Its determined by the Regional Tripartite
Wages and Productivity Board. You did not read your revised
guidelines in evaluation of facilities. What else?
S: Third, it must be voluntarily accepted by the employee in
writing.
A: Okay, voluntarily. Let’s go to the first requisite for
facilities to be deductible. It must be customarily furnished
by the employer for the employees, what do you understand
by customarily?
S: It must be in the practice of the employer that – uhm –
that he would provide such facility to the employee.
A: Mmm. Next question, what is the test in determining
whether an article or services will qualify as facilities or not?
What is the test? Controlling test?
S: Uhm – One test in determining whether an article or
service is a facility or not is to test if the- such article or
service is primarily for the benefit of the employee or his
family.
A: Correct. So, whether an article or services will qualify as a
facility or not will depend on the purpose. So, if it is for the
LABOR STANDARDS – RECITATION – AUGUST 29 2018
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primary benefit of the employee or his family. Then it could
qualify as facilities?
S: Yes, Atty.
A: On the other hand, Mr. ----, if the article or services do
not qualify as facilities, then how do we categorize it?
S: They are categorized as supplements.
A: And what is meant by supplements?
S: Supplements are those tools, articles or services, which
are extra renumerations or benefits given by the employer to
the employee over the basic earnings or basic wages of the
employee.
A: That’s correct. Give an example.
S: One provided example of supplements in the guidelines is
shares of capital stock given by the employer to the
employee.
A: Ms. ----. Okay. What is now the prevailing wage order in
Region VII? For uh, the cities of Lapu-Lapu, Cebu and
Mandaue?
S: *inaudible*
A: You have to speak louder because Mr. xxxx cannot hear
you.
S: It is wage order No. 21.
A: 21. And uh this wage order took effect, when?
S: August 3, 2018.
A: Prior to such wage order, what is wage order no.20? How
much was the daily minimum wage under wage order no.
20?
S: If I remember correctly, Atty. It was 376.
A: And how much is the wage order, now?

A: They are called supplements? Why? S: 386.

S: Because they are not part of the wage. They are A: Okay, the wage order prior to that was? How much was
additional benefits given by the employer to the employee. the minimum wage?

A: Under the guidelines? S: Wage order no. 20, it was 376.

S: If I remember correctly, Atty. A: Is it correct, Mr. xxxx?

A: Does the guidelines provide examples of supplements? Mr. xxxxx: No, Atty.

S: Yes, Atty. A: You tell her.

A: Read it. Open your regulations and let’s see if you are Mr. xxxxx: No, uh-
telling the truth or not. I want the hard copy, Mr. ----- A: Are you shy? You’re a man!
S: I don’t have it, Atty. Mr. xxxx: No, Ms. -----, I’m sorry.
A: You don’t have? Okay. That is taken against you. So, you S: It’s 366.
may sit down.
A: Is that correct, Ms. xxxx?
--- third person ----
LABOR STANDARDS – RECITATION – AUGUST 29 2018
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Ms. xxxx: Yes.
A: 366. Under wage order, no.20. Now, 386?
S: Yes, Atty.
A: Okay. Now it has been said, whenever there is a new
wage order. There may be some instances when a wage
distortion may occur, what are the requisites to constitute
wage distortion?
S: *Inaudible*
A: You have to speak louder, can you hear her, Ms. xxxx?
Ms. xxxx: No, Atty.
S: *inaudible*
A: No, I’m asking you for the requisites not the definition.
There are four, diba, Mr. xxxx?
Mr.xxxx: Yes, Atty.
A: O, yes. What is the first requisite?
S: There is an increase in the *inaudible*
A: Four requisites.
S: I’m sorry, Atty. I cannot remember.
A: Okay, she cannot remember the four requisites to
constitute wage distortion. Now, Under the law, does it
provide a remedy, when there exists a wage distortion?
S: Yes, Atty. *inaudible*
A: So, your solution is to appeal the wage order, that’s the
remedy provided by law in case there exist a wage
distortion? Ms. xxxx? I cannot really hear you. You are the
group leader, remember? Ito inyong seat plan, may yellow
yan. Titirahin ko kayong mga group leader. Diba, its now
your turn. Titirahin ko, ng recitation. After that mga
myembro. Mga sundalo niyo. You listen to my question. You
did not tell us the requisites when there is a wage distortion.
You did not study your lesson. No. 2, my question is if there
exists a wage distortion, does the law provide a solution?
Your answer is Yes, you can appeal.
S: The remedy- The remedy is the employer can appeal to
the courts-
A: To the court?
S: To the regional tripartite wages and productivity board.
A: Ah, so when there exists a wage distortion, the party may
appeal to the?
S: May appeal to the Regional tripartite wages and
productivity board.
A: Is that correct, Ms. xxxx?
Ms. xxxx: I’m sorry, It’s not correct.
A: It’s not correct daw o. It’s not correct! So, your answer is
wrong. Would you like to change your answer? Or would you
like to stand firm with your answer?
S: It’s the national wages and productivity and commission.
A: Ah so it’s not the RTWPB but the NWPC? Is that correct,
Ms. xxxx?
Ms. xxxx: No, Atty.
A: O, wrong nanaman. You may sit down.
--- fourth person ---
A: Ms----, answer, same question.
S: Uh-
A: If there exists a wage distortion, sir, the remedies
provided by law are-
LABOR STANDARDS – RECITATION – AUGUST 29 2018
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S: If there exists a wage distortion sir, the parties may not acceptable to me. Reach my standards. Speak like a law
appeal or file a complaint to a labor arbitrator. student. Kaya mo yan.
A: You see when there exists a wage distortion, there is an S: The remedies provided by law when there is-
aggrieved party, diba? By the way, what are the requisites to
constitute a wage distortion? A: When there exists- You have to listen to my question, I’m
so tired.
S: The requisites are, there must be an existing hierarchy of
positions – S: The remedies provided by law when there exists a wage
distortion, the concerned parties – uh – the concerned
A: Spell hierarchy. parties may file to voluntary arbitrators-
S: H-i-e-r-a-r-c-h-y. A: Voluntary? Is that correct Mr.xxxx?
A: I just want to make sure. Mr. xxxx: Uhm. No, sir.
S: With a corresponding salary or wage. And the next one is A: Wrong, you may sit down Ms.----.
there must be a significant change-
A: Significant INCREASE.
S: Yes, Atty. In the lower class without an equal increase in
the higher ones. And the third one, there must be a
distinction between the two levels. And the last one is,
existence of distortion between the same group in the same
region.
A: Same region?
S: Yes, Atty.
A: Okay, let’s go back to the main question. When there
exists a wage distortion, what is the remedy provided by
law?
S: From what I remember, Atty. If there is an existing
Collective Bargaining Agreement in an establishment, the
parties may appeal-
A: Ang gulo gulo, na stress ako. Ayusin and answer. Ang
gulo. The question is very simple. It has been asked twice in
the bar examinations. Try to organize your thoughts. Sige
na, para mag survive tayo ng 2nd year. Mga ganyang sagot is